How to buy Discover Financial Services stock - 06 March

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How to buy Discover Financial Services stock

Own Discover Financial Services stock in just a few minutes.

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Discover Financial Services is a credit services business based in the US. Discover Financial Services shares (DFS) are listed on the NYSE and all prices are listed in US Dollars. Discover Financial Services employs 17,600 staff and has a trailing 12-month revenue of around USD$6 billion.

How to buy shares in Discover Financial Services

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Discover Financial Services. Find the stock by name or ticker symbol: DFS. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Discover Financial Services reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Discover Financial Services, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Discover Financial Services. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Discover Financial Services share price

Use our graph to track the performance of DFS stocks over time.

Discover Financial Services shares at a glance

Information last updated 2021-03-03.
52-week rangeUSD$22.56 - USD$100.4968
50-day moving average USD$92.6871
200-day moving average USD$75.2465
Wall St. target priceUSD$107.56
PE ratio 27.1468
Dividend yield USD$1.76 (1.82%)
Earnings per share (TTM) USD$3.596

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Discover Financial Services stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is Discover Financial Services under- or over-valued?

Valuing Discover Financial Services stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Discover Financial Services's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Discover Financial Services's P/E ratio

Discover Financial Services's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, Discover Financial Services shares trade at around 27x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

Discover Financial Services's PEG ratio

Discover Financial Services's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.3557. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Discover Financial Services's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Discover Financial Services financials

Revenue TTM USD$6 billion
Operating margin TTM 26.71%
Gross profit TTM USD$5.4 billion
Return on assets TTM 1.01%
Return on equity TTM 10.03%
Profit margin 19.16%
Book value $32.055
Market capitalisation USD$29.9 billion

TTM: trailing 12 months

Shorting Discover Financial Services shares

There are currently 3.4 million Discover Financial Services shares held short by investors – that's known as Discover Financial Services's "short interest". This figure is 38.6% down from 5.5 million last month.

There are a few different ways that this level of interest in shorting Discover Financial Services shares can be evaluated.

Discover Financial Services's "short interest ratio" (SIR)

Discover Financial Services's "short interest ratio" (SIR) is the quantity of Discover Financial Services shares currently shorted divided by the average quantity of Discover Financial Services shares traded daily (recently around 3.1 million). Discover Financial Services's SIR currently stands at 1.11. In other words for every 100,000 Discover Financial Services shares traded daily on the market, roughly 1110 shares are currently held short.

However Discover Financial Services's short interest can also be evaluated against the total number of Discover Financial Services shares, or, against the total number of tradable Discover Financial Services shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Discover Financial Services's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Discover Financial Services shares in existence, roughly 10 shares are currently held short) or 0.0111% of the tradable shares (for every 100,000 tradable Discover Financial Services shares, roughly 11 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Discover Financial Services.

Find out more about how you can short Discover Financial Services stock.

Discover Financial Services's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Discover Financial Services.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Discover Financial Services's total ESG risk score

Total ESG risk: 28.56

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Discover Financial Services's overall score of 28.56 (as at 01/01/2019) is pretty good – landing it in it in the 39th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Discover Financial Services is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Discover Financial Services's environmental score

Environmental score: 7.61/100

Discover Financial Services's environmental score of 7.61 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Discover Financial Services's social score

Social score: 19.64/100

Discover Financial Services's social score of 19.64 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Discover Financial Services's governance score

Governance score: 16.82/100

Discover Financial Services's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Discover Financial Services is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Discover Financial Services's controversy score

Controversy score: 1/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Discover Financial Services scored a 1 out of 5 for controversy – the highest score possible, reflecting that Discover Financial Services has managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Discover Financial Services was last rated for ESG on: 2019-01-01.

Total ESG score 28.56
Total ESG percentile 38.78
Environmental score 7.61
Environmental score percentile 8
Social score 19.64
Social score percentile 8
Governance score 16.82
Governance score percentile 8
Level of controversy 1

Discover Financial Services share dividends

45%

Dividend payout ratio: 44.64% of net profits

Recently Discover Financial Services has paid out, on average, around 44.64% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.82% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Discover Financial Services shareholders could enjoy a 1.82% return on their shares, in the form of dividend payments. In Discover Financial Services's case, that would currently equate to about $1.76 per share.

While Discover Financial Services's payout ratio might seem fairly standard, it's worth remembering that Discover Financial Services may be investing much of the rest of its net profits in future growth.

Discover Financial Services's most recent dividend payout was on 4 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 17 February 2021 (the "ex-dividend date").

Discover Financial Services share price volatility

Over the last 12 months, Discover Financial Services's shares have ranged in value from as little as $22.56 up to $100.4968. A popular way to gauge a stock's volatility is its "beta".

DFS.US volatility(beta: 1.78)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Discover Financial Services's is 1.7828. This would suggest that Discover Financial Services's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Discover Financial Services overview

Discover Financial Services, through its subsidiaries, operates as a digital banking and payment services company in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts, checking accounts, and sweep accounts. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as provides payment transaction processing and settlement services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.

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